According to the law firm press release, the Complaint alleges that during the Class Period, Defendants made false and misleading statements and concealed a scheme to defraud investors in the Offerings regarding the Company’s operations, its business and finances, and its outlook. Specifically, Defendants caused its Offerings to trade at artificially inflated prices by failing to disclose that Volkswagen utilized a “defeat device” in certain of its diesel cars that allowed such cars to temporarily reduce emissions during testing, while achieving higher performance and fuel economy, as well as discharging dramatically higher emissions, when testing was not being conducted. The Complaint alleges that Defendants made misrepresentations and omissions in its public statements as well as in its offering memoranda in connection with the issuance of over $8 billion of Offerings on May 23, 2014, November 20, 2014, and May 22, 2015. Through this series of revelations and Volkswagen’s admissions, the Offerings have declined from an average of 99.854% par value on September 18, 2015 to an average of 95.624% par value on September 22, 2015, representing a decline of over $300 million.
On October 11, 2016, the Court issued an Order appointing Lead Plaintiff and Counsel.